Although plenty of entrepreneurs choose to go after
opportunities that are easy to spot, you shouldn't overlook the
many hidden opportunities that are out there. If you keep an open
mind, you just might uncover a gem. That's what brothers Dan
and Russell Schlueter, 42 and 43, respectively, did. At a trade
show in 1977, the Harvest Ventures founders spotted an opportunity
that everyone else passed by and successfully incorporated that
product into their business. Now they expect 2002 sales of their
Waconia, Minnesota, pet products company to exceed $10 million.

Opportunity Knocks

According to Dan, their business--which at the time sold only
one product, a chew bone for dogs--hit a turning point in 1997
after they attended the Backer Show, a pet trade show in Chicago.
"We were exhibiting our Harvest Chews [for dogs]," he
says. "We walked [around] and saw a man everyone was ignoring.
His booth was small, without a lot of fanfare, but he had a great
demonstration. He put three or four cups of water in a bowl with
just a small amount of pellets, and the pellets absorbed
everything. The demonstration was extraordinary."

When the Schlueters stopped and talked to the demonstrator, they
discovered the "miracle" pellets, intended for use as
kitty litter, were made of silica sand, a very strong absorbent.
From the start, the brothers felt the pellets would offer a
significant benefit to users: 4 pounds of silica sand lasted as
long as 28 pounds of traditional kitty litter. Says Dan, "[We]
look for products that are different and that can be
demonstrated." Convinced they had a winning innovation on
their hands, Dan and Russell set out to strike a deal with the
largest silica gel manufacturer in China so they could add the
pellets to their product line.

As it turned out, the Schlueters were right in a big way. The
litter pellets they now sell--called Ultra Pearls in grocery stores
and mass merchandisers and Crystal Clear Litter Pearls at pet
retailers--have gathered numerous awards, including the 1999
Outstanding Technology Achievement Award from Petsmart and the 1999
Editors' Choice Award from Cat Fancy magazine.

Thinking Outside the Box

But this kind of success can't be achieved without a lot of
hard work. Following the trade show, the brothers talked with
industry experts to make sure others agreed this innovative product
had real potential. Next, they gave out free samples to people with
cats. After receiving positive feedback, the brothers felt they had
the foundation needed to move forward.

But would price-conscious consumers really pay $14 to $16 for a
4-pound bag of Crystal Pearls, when a 14-pound bag of a competing
brand cost only $6 to $7? The Schlueters thought so. The price
difference wasn't really all that significant when you consider
that a 4-pound bag of Crystal Pearls lasts 30 days--as long as two
14--pound bags from the competition.

At this point, the Schlueters had a competitive price and a
great product demonstration. In 1998, they hit the pet trade show
circuit again. By 1999, they were able to land not only the big pet
retailers, but also dozens of distributors that served independent
pet retailers.

By this time, grocery stores also were starting to show interest
at trade shows, and in 2000, the brothers were able to introduce
Ultra Pearls in grocery stores and mass merchandisers nationwide.
Grocery stores are often difficult for entrepreneurs to sell to,
because they're forced to go through food brokers, who
aren't interested in supporting small-volume products. But
these brothers had a tactic for getting by such resistance.
According to Dan, "A major reason for our success in grocery
stores was our willingness to offer them a better margin." In
a low-margin business like grocery stores, every extra percentage
point makes a big difference.

LET ME THINK

If you've stumbled
upon a great idea for a new product but you're not sure which
features would make for a better mousetrap, check out www.creativitycentral.com. The site belongs to Maria
and Charlie Girsch, authors of Fanning the Creative Spirit: Two
Toy Inventors Simplify Creativity (Creativity Central). Log on
for "stretcher sizer exercises" that aim to help you
think in new ways. The site also lists some of the top books
written on the topic of creativity.

If your employees need to get their creative
juices flowing, check out Aerobics of the
Mind, a series of game and puzzle cards for use in
groups.

Steps to Success

You can spot new opportunities with a strong chance for success
by following these criteria:

1. The product has a big difference
people will notice. With so many thousands of products
on the market today, you won't succeed without a big enough
advantage to make people stop and take notice. In the case of
Crystal Pearls, the product had two features customers observed
immediately: First, it came in a much smaller, more convenient
bag--4 pounds vs. a 14-pound bag of traditional kitty litter.
Second, Crystal Pearls clearly absorbed all fluids, while
competitive products simply turned the liquid into little
clumps.

2. It has a strong selling point that
will entice the distribution channel to carry your
product. If you can't get the distributor to carry
your product, it won't matter if consumers like it or not
because they'll never even get the chance to see it. Because a
distribution channel may only carry 10 to 25 percent of the
products available to it, getting distributor support requires that
you have at least one strong selling point. The Schlueters had two
advantages: First, the smaller bag that's attractive to
customers is also attractive to retailers because it allows them to
produce more sales per amount of shelf space than the competition;
and second, the Schlueters were able to offer a better margin. One
of the biggest mistakes inventors make is to believe distributors
will carry their product for less margin because their product is
new. Actually, the opposite is true: Distributors want more margin
from a new product.

3. Pricing should be comparable to
competing products. In the case of Crystal Pearls, a
month's supply cost about the same as a month's supply of a
competitor's product. Fact is, consumers are more likely to
take a chance on a new product if it's close in price to
existing products. Most consumers have been burned dozens of times
on the supposed benefits of a new product, so they approach new
product claims with a great deal of skepticism. A high price is all
they need to decide not to buy.

The Schlueters clearly have an entrepreneurial bent. In addition
to Harvest Ventures, they run two other businesses: Sourcing
Solutions, which helps companies locate international sources for
their products, and RDS Associates, which creates engineering
solutions and custom parts for the motorcycle industry. But an
entrepreneurial spirit only works when you sell products or
services that people value. To attain business success, keep your
eyes open for opportunities, follow the guidelines for a saleable
new product, and move fast before someone else discovers your
"golden goose."

PATENT LEARNER

The Federal Consumer Information Center Web
site is loaded with helpful, easy-to-understand articles
about patents for new inventors. Topics range from the Document
Disclosure Program, which inventors can use to establish a record
of their invention for just $20, to how to submit an appeal to the
Board of Patent Appeals and Interferences when your patent
application has been denied. Another great source of information is
the U.S. Department of Commerce's pamphlet Patents and How
to Get One: A Practical Handbook ($3.95). To order a copy, log
on to www.uspto.gov.

Don Debelak is a
new-business marketing consultant and author of Think Big: Make
Millions From Your Ideas.